Part 7/9:
Focusing the lens on Solana, a blockchain known for its memecoin activity, Amund highlighted a contradictory reality: while the influx of memecoins initially spurred trading volumes, the subsequent sell pressure is heavily impacting Solana's native token. The ecosystem is witnessing a surge in projects launching new memecoins daily, leading to rampant liquidity sniping, which further exacerbates the volatility.
While memecoins may have boosted trading activity in the short term, experts warn of potential pitfalls, especially as ambitious teams leverage insider knowledge to profit at the expense of unsuspecting investors. Current trading volumes suggest that the reliance on memecoins for liquidity may backfire as the market begins to acknowledge these risks.